Question

While calculating Funds from Operations (FF

  • O in a Funds Flow Statement, how should non-operating incomes—such as Gain/Profit on Sale of Plant & Machinery or Dividend Received—be treated against Net Profit?
A Added back to Net Profit
B Deducted from Net Profit
C Ignored completely as they are operating items
D Transferred directly to current assets in the Schedule of Changes in Working Capital
E Multiplied by the retained earnings ratio
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